The cause of civilization in the world is the transition of agriculture economy to industrial economy. The production of handmade crafts was replaced by factory-manufactured goods and transports from the majority of the rural population.
For countries such as China, South Korea, Taiwan and Indonesia, metal industry development is still a pillar of their economy. And most of the world’s most developed countries now have access to the vehicles and aircrafts they produce today, the roads and buildings they build, and the railways and technologies they expand.
The growth of the sector is a measure of economic growth and is also a pillar to facilitate general growth.
Although Ethiopia has been able to work in the past with iron, plow, knives, axes and other tools, it has not been a stimulus for the sector. Especially in the previous feudal system, professionals in this profession were less likely to make appropriate changes because their reputation was socially not accepted. It has been a major obstacle, especially for those who work in metalworking, with the description of blacksmiths, strippers, and others.
By contrast, after the fall of the feudal system, the focus for the sector has changed somewhat. However, in terms of supporting and growing modern technology, the sector has failed to take the required steps. As a result, Ethiopia has limited resources, but not fully utilized.
According to the Ethiopian Revenue and Customs Authority, Ethiopia imported an average of 564,457 tons of iron ore products from Turkey, Ukraine, Russia, China and Japan from 2008 to 2012 EC since economic growth and technology without metal products are not accessible.
Various metal factories are being built by private investors in Ethiopia so that the steel industry is as strong as its name for economic growth and prosperity. One of them is the steel company owned by Korean investors. The factory was built for 30 million USD in Dukem, Oromia State.
In the first and second phase, construction has the potential to produce 300,000 tons of different metals. Mr. Lee Hing, Ethiopia’s Head of Advertisement and Training Department at ECOS Metal Factory, identifies the factory as one of the manifestations of Ethiopia and Korea’s long-term relationship. The factory is working to fulfill its social responsibilities alongside its main function.
He exemplified the plan to benefit 38 farmers who do not have access to electricity in the Dukem area with water to the local community.
Metal products are the backbone of economic growth and industrial expansion. They are important for building, railway and industrial park constructions. Therefore, the factory has a significant role in knowledge transition to the metal industry professionals. Ethiopia has also been able to save foreign currency through domestic production of iron ore.
Renewable energy is used to operate the machine creating jobs to over 500 people.
Currently, it has enabled the nation to save more than 60 million dollars a year solving the foreign currency shortage. As well, it has a plan to build an additional steel mill. This will enable the factory to increase its production capacity from 300,000 metric tons of steel to 500,000 metric tons. As a result, the plant will save about 90 million USD a year by replacing imported steel products.
Likewise, the company’s Chief Executive Officer (CEO), Zhil Hachio says that ECOS Steel Mining Company was established in South Korea in 1914 and was inaugurated in Ethiopia a year ago. The 30 million USD factory will provide a variety of steel products for the construction expansions in Ethiopia.
The CEO also claims that professional ethics is a key to provide quality and reliable products to customers with affordable prices. Plans are underway to expand the factory in order to satisfy the demand for metals in Ethiopia. So far, it has done expansion works in two phase constructions.
The factory is importing raw materials from Ukraine, Poland and South Korea and is working to meet the high demand for metal products. Its products are iron ore, electric wire, metal pipe, and corrugated iron.
The government is working hard for the establishments of industries that can produce steel products to balance the demands of the private sector enterprises. Accordingly, the production capacity of 454,000 tons of concrete metal in 2011 has now reached about two million tons.
The demand for concrete metal is steadily increasing as the construction industry continues to expand. In addition to the massive projects undertaken by the government and the private sector, the desire to use amateur iron for even simple construction work on an individual basis has increased.
Similarly, many activities are underway to enable the private investors play their essential roles in the field of metal and engineering works. The government has created a favorable environment for the expansions of the existing industries and for new investments. The government is also working to create an administration that supports efficient and sustainable development and provision of infrastructure, and human resource.
In the same way, the government needs to scale up the capacity of medium and large metal and engineering industries in the private sector. The expansion of the steel factories is not only to bring about technological transformation but also plays a major role in the development projects that are key to economic growth.
At last, the government of Ethiopia is also working exhaustively on the infrastructure development to attract investors in the sector to replace exports by the local industrial outputs from the available inputs. (Source: Addis Zemen, Meskerem 5)
The Ethiopian Herald September 27, 2019
BY STAFF REPORTER
